This content was published on March 23, 2023 – 17:43
minutes
New York, Mar 23 (EFE) the one who accuses her of facilitating fraud and illegal activities.
The report was published by Hindenburg Research, an investment group specializing in “short-selling” – betting on the market against companies – whose investigations have led to the collapse of the stock market and the fall from grace of the Indian conglomerate Adani and the American electric vehicle manufacturer Nikola .
In the harsh document, Hindenburg indicates that he has investigated Block for two years and concludes that he “facilitates fraud against consumers and the government, avoids regulations, disguises predatory commissions and lending as revolutionary technology, and misleads investors with inflated metrics.”
The company, which says it has relied on “dozens of interviews” with former employees, partners and experts, review of litigation and regulatory records, as well as public information requests, likens Block’s controls to the “Wild West” and claims which is especially useful to “criminals”.
He especially attacks his popular mobile payment application, Cash App, which he accuses of having a large number of fake accounts and of being one of the most used for payments for sex trafficking and other illegal activities while Block generally does not. take action.
And he also lashes out at Dorsey himself, an eccentric businessman known for his bohemian lifestyle, whom he accused of building a fortune “professing to care deeply about the population he takes advantage of,” and selling interests worth hundreds of millions of dollars after the bonanza of the pandemic to protect yourself in the future.
The actions of Block – which includes under its umbrella, in addition to Cash App, the financial company of deferred payments Afterpay and the digital “streaming” of music videos Tidal, fell 19% after the report and then moderated slightly until yield 14% in the middle of the session. EFE
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